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Environment-biased technological progress and industrial land-use efficiency in China’s new normal

Author

Listed:
  • Malin Song

    (Anhui University of Finance and Economics)

  • Shuhong Wang

    (Ocean University of China)

  • Kaiya Wu

    (Fudan University)

Abstract

The slow growth of the Chinese economy has led to a reduced number of environmental regulations. This study aims to establish whether China’s “new normal” economy can stimulate environment-biased technological progress to improve industrial land-use efficiency. First, we set up a two-sector theoretical model where in the new normal is treated as an exogenous variable to analyze the combined effects of technological progress, industrial land-use efficiency, and environmental regulations. Then, we establish a multi-index and multi-indicator constitutive equation, in which environment-biased technological progress is taken as an intermediate variable. The results show that the effects of weak environmental regulations on environment-biased technological progress are not significant and that China’s new normal economy can stimulate the progress of clean technology, thereby improving industrial land-use efficiency. Finally, foreign direct investment restricts the improvement of industrial land-use efficiency.

Suggested Citation

  • Malin Song & Shuhong Wang & Kaiya Wu, 2018. "Environment-biased technological progress and industrial land-use efficiency in China’s new normal," Annals of Operations Research, Springer, vol. 268(1), pages 425-440, September.
    • Handle: RePEc:spr:annopr:v:268:y:2018:i:1:d:10.1007_s10479-016-2307-0
    DOI: 10.1007/s10479-016-2307-0
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